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| Lead-in: Can you name the four factors that are called “marketing mix”? Key words and phrases 1. market segmentation –ринкова сегментація 2. competitor–конкурент 3. to launch a product –запускати товар у виробництво 4. market research –ринкове дослідження 5. sales representative –торговий представник 6. brand name –марка товару 7. distribution channels –канал розповсюдження, збуту 8. inventory size –величина поточного запасу 9. advertising –реклама, рекламна справа 10.publicity –популярність, реклама 11.sales promotion –просування товару 12.discount –дисконт, скидка 13.credit terms –кредитні умови 14.industrial marketing and consumer marketing –промисловий маркетинг таспоживчий маркетинг |
“The last stage of fitting the product to the market
is fitting the market to the product.”
(Clive James, Australian writer and broadcaster)
Most management and marketing writers now distinguish between selling and marketing. The ‘selling concept’ assumes that resisting consumers have to be persuaded to buy non-essential goods or services. The ‘marketing concept’, on the contrary, assumes that the producer’s task is to find wants and to fill them. As well as satisfying existing needs, marketers can also create new ones.
Marketers are always looking for market opportunities – profitable possibilities of filling unsatisfied needs or creating new ones in areas the company is likely to enjoy a differential advantage. Market opportunities are generally isolated by market segmentation. A company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the final product comes into existence. The company must also take into account the existence of competitors.
Rather than risk launching a product or service on the basis of intuition, most companies undertake market research (GB) or marketing research (US). They collect and analyze the information about the potential market, about consumer reaction to particular product or service and so on. Sales representatives are another important source of information.
Once a product concept has been established, the company has to think about the marketing mix, i.e. the various elements of marketing program. The best-known classification of these elements is the ‘4 Ps’: product, place, promotion and price. Aspects in marketing products include quality, features, style, brand name, size, packaging, services and guarantee. Place in marketing includes distribution channels, points of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, personal selling, while price includes the basic list price, discount, payment period, credit terms, and so on. The producer market is larger than the consumer market since it contains all the raw materials, manufactured parts and components, plus capital equipment such as buildings, machines, energy, and services ranging from cleaning to management consulting. Consequently, there is more industrial than consumer marketing. It must be remembered that apart from consumer markets there exists an enormous producer or industrial or business market.
ØComprehension:
1. Characterize the ‘selling concept’ and the ‘marketing concept’.
2. Why do companies undertake market research?
3. What is marketing mix?
4. Characterize each component of marketing mix.
5. What does a producer market consist of?
Summarizing.
Complete the following sentences to summarize the text above:
1. There are two concepts in modern marketing, the ‘selling concept and...
2. The ‘selling concept’ assumes that...
3. The ‘marketing concept’ assumes that...
4. The various elements of marketing program are called...
5. Apart from consumer markets there are...
True-false questions:
| 1. Most management and marketing writers now distinguish between selling and marketing. | |
| 2. ‘Marketing’ and ‘selling’ concepts do not differ very much. | |
| 3. Marketers are always looking for market opportunities in areas the company is likely to enjoy a differential advantage. | |
| 4. The only source of information for companies is market research. | |
| 5. ‘Marketing mix’ means the various elements of marketing program. | |
| 6. Apart from consumer markets there exists an enormous producer or industrial or business market. | |
8Viewpoint:
Can marketing and selling be opposed or are they part and parcel of each other?
ADVERTIZING
| Lead-in: Do you agree with the statement “Advertising is the life of trade”? Key words and phrases 1. promotion –просування, впровадження товару 2. institutional advertising –інституціональна реклама 3. goodwill –репутація, престиж 4. advocacy advertising –пропагандистська реклама 5. to persuade and remind –переконувати та нагадувати 6. product life cycle–життєвий цикл товару 7. growth and maturity stages –зростання та зрілість 8. decline stage –період зниження, спаду 9. to allocate the budget –розподіляти, розміщати бюджет 10. life span –тривалість життя 11. advertising media –засоби інформації, що використовуються для розміщення реклами 12. outdoor advertising –зовнішня реклама |
Advertising is a paid, non-personal sales communication directed at a large number of potential buyers. For many firms, it is the most effective type of non-personal promotion.
The two basic types of advertising are product and institutional. Product advertising involves selling a good or service. Institutional advertising involves promoting a concept, idea, or philosophy, or the goodwill of an industry, company, organization, of government entity; a form of institutional advertising that is growing in importance, advocacy advertising, supports a specific viewpoint on a public issue. Its purpose is to influence public opinion and the legislative process. Both nonprofit organization and businesses use advocacy advertising.
Both product and institutional advertising can be subdivided into three categories according to the purpose: to inform, persuade, or remind. Informative advertising, intended to build initial demand for a product, is used in the introductory phase of the product life cycle. Persuasive advertising attempts to improve the competitive status of a product, institution or concept. It is used in the growth and maturity stages of the product life cycle. Reminder-oriented advertising, often used in the late maturity or decline stages of the product life cycle, tries to remind people of the importance and usefulness of a product, concept, or institution.
All marketers face the question of how to best allocate their advertising budget.
Newspapers are the largest of the advertising media. Because newspaper advertising can be tailored for individual communities, local advertising is common. Other advantages are that readers can refer back to them. A disadvantage is the relatively short life span.
Television advertising can be classified as a network, national, local, and cable. TV has the advantage of a significant impact on potential customers. Mass coverage, repetition, flexibility, and prestige are other advantages. The disadvantages of television as an advertising medium include high cost, the temporary nature of the message, some public distrust.
Direct mail is another form of advertising media.
Its advantages include selectivity, intense coverage, speed, flexibility, complete information. On the negative side, direct mail is very expensive.
Radio is another important broadcast advertising medium. It can be classified as network, spot and local advertising. Advantages of radio are its immediacy, low cost, targeted audience selection, flexibility and mobility. Disadvantages include the short life span of a message and a highly fragmented audience.
Magazines are also used in advertising. Advantages of magazines include selectivity, quality reproduction, long life and prestige. But they lack the flexibility of newspapers and broadcast media.
Outdoor advertising, such as billboards, is one more advertising medium. It communicates simple ideas quickly. Other advantages are repetition and the ability to promote goods and services available for sale nearby. There are disadvantages, however. The medium requires that messages should be brief, and there isn’t much time to make a point.
There are lots of other options that companies can use to advertise products: public transportation, movie theatres, special advertising conferences may be held for advertising purposes.
ØComprehension:
1. What is the purpose of advertising?
2. How can goods be advertised?
3. Characterize each type of advertising.
4. What are the advantages and disadvantages of each type of advertising?
Summarizing.
Complete the following sentences to summarize the text above:
1. Advertising is...
2. The two basic types of advertising are...
3. Product advertising involves...
4. Institutional advertising involves...
5. According to the purpose, advertising can be subdivided into...
6. Informative advertising is used...
7. Persuasive advertising attempts to...
8. Reminder advertising tries to...
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